HBA-JLV H.B. 2739 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2739
By: Turner, Bob
Ways & Means
4/5/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides for a property tax to be assessed on property which
loses its exemption status during the year.  The amount of tax assessed is
based on a percentage which is prorated based on the number of days in the
year that the property did not qualify for the exemption.  In 1997, the
legislature provided for the prorated tax to apply to residential
homesteads owned by persons 65 years of age or older whose exemptions
terminated during the year.  The 76th Legislature removed provisions
requiring taxing units to assess a prorated tax to persons who are 65 years
of age or older and who lose their residential homestead tax exemptions.
House Bill 2739 removes provisions regarding the calculation of such a
prorated tax. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2739 amends the Tax Code to delete provisions regarding the
calculation of the prorated tax levied on residential property which no
longer qualifies for a homestead exemption and which was owned by persons
65 years of age or older. 

EFFECTIVE DATE

September 1, 2001.